EIB Group And Spanish Ministry Of Economy Sign Agreement To Implement The Regional Resilience Fund
Business
The Fund, led by the Ministry of the Economy and in which the Autonomous Communities will play a key role in the selection of projects to be financed, will spur environmental, and social investments in the Spanish Autonomous Communities, and will channel financing of the Next Generation EU loans under the Spanish Recovery, Transformation and Resilience Plan.
The Fund’s objective is to facilitate access to financing in the Spanish Autonomous Communities using Next Generation EU loans to develop projects in eight priority areas: social and affordable housing, urban regeneration, sustainable transport and tourism, energy transition, water and waste management, care sector, research, development and innovation, and the competitiveness of industries and small and medium-sized enterprises (SMEs).
The agreement represents a major milestone in the implementation of the loans of the Spanish Recovery, Transformation and Resilience Plan. The implementation of the Fund will be coordinated between the Ministry of Economy, the Autonomous Communities, and the EIB Group. The Autonomous Communities will participate in the Fund through the Investment Councils, governing bodies for each of the financial instruments and responsible for monitoring operations.
As a strategic partner for the management of the Fund, the EIB Group, which has extensive experience in financing sustainable investments in the Autonomous Communities, will provide Spain with its technical, economic and financial expertise to ensure the development of high impact projects.
This signature includes a framework agreement among the European Investment Bank (EIB), the European Investment Fund (EIF) and the Kingdom of Spain to launch the Fund. In addition, a first phase of available funding up to €3.4 billion will be activated including:
- a direct facility to co-finance EIB-supported operations in sectors such as renewable energy, clean transport or sustainable infrastructure
- an intermediated facility to be invested by financial intermediaries selected by the EIB, to support urban development and sustainable tourism projects
- two instruments intermediated by the EIF, to be launched in the coming weeks, that will facilitate SME financing in areas such as innovation, sustainability and competitiveness.
The phase approach is a flexible way to adapt finance products to meet market demand and the needs of the Autonomous Communities maximising the impact of the funds.
The EIB Group has a proven record and extensive expertise as implementing partner of EU financing for Member States. Specifically for the Next Generation EU’s loans, the EIB Group is currently an implementing partner for the governments of Greece, Romania and Italy.
In addition, the EIB Group will complement the financing of projects with own resources beyond the Fund itself and will mobilise private investment, having a catalyst effect.